Focus on Mexico

Click to visit our web site www.ActiveAdultLiving.com
Details and Web Links to Over 3,000 Active Lifestyle Communities

Oceans, mountains, great weather, world-class dining, art, music and spas mark the tourism industry of Mexico.  It also makes the lifestyle.  The official name of Mexico is “Estados Unidos Mexicanos” and it is comprised of 32 states.  The population is just under 97,500,000 made up of 60% Mestizo, 30% Indian, 9% Europeans and 1% other.  The official language is, of course, Spanish but they also have over 66 Indian languages.  The first known civilization there was the Olmecan tribe who first appeared around 1500 B.C.

The U.S. dollar can go much further in Mexico.  But the real trick as far as maximizing that advantage in purchasing real estate there is knowing how to do it.  Probably the first thing to do is to locate a reputable real estate agent there.  A good place to start that search is the U.S. Embassy. The reason for this is that Mexico legislates how foreigners can buying according to where a property is located.  In Mexico there is what is known as the Restricted Zone.  This is property that is located within 50 kilometers (about 31 miles) from any coast and/or 100 kilometers (about 62 miles) from any border and it is prohibited from direct acquisition from foreigners.  So, for example, the entire Baja California peninsula is in the restricted zone.  Outside the Restricted Zone, foreigners can acquire direct ownership as long as they abide by Mexican law and waive their rights to any foreign government intervention in case of legal conflicts.  However, given that most foreigners desire property in the coastal areas, in 1993 Mexico liberated ownership provisions of property in the Restricted Zone and passed the Foreign Investment Law.   The purpose of this law is to encourage fair and balanced development while maintaining Mexican economic independence.

While it sounds confusing, as long as you have a real estate agent and an attorney knowledgable about the laws relating to the Restricted Zones, you can have peaceful ownership.  To start you will need to set up a real estate trust fund to hold title for you as a foreigner.   Since you are not able to enter into a contract to buy real estate, a Mexican bank must do so on your behalf.   These trusts are known as “fideicomisos”.   The bank, as trustee, buys the property and then has a fiduciary obligation to follow your instructions.  To help clarify this, it is akin to a trust buying property for a minor as they cannot contract.  By establishing such a bank trust, foreigners can use, improve, rent and sell their property as though they directly owned the property.

This article is not intended to provide legal advice but merely a brief outline of what to expect when considering purchasing property in Mexico.  It is imperative that you hire qualified help and know there are hoops to jump through that don’t exist in the U.S.  But what a lifestyle and it’s easy to get back to the States . .